| Feb 9, 2010 |
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Daily Insight - Feb 9, 2010 3:30pm With news that Germany is planning an aid package for Greece and Coca Cola's earnings were stellar, markets have gapped up to rally to their respective declining midpoints. As such, a pivotal day is set for Wednesday because if prices break above Tuesday's highs, then a sideways consolidation will not be unexpected. Otherwise, a negation of today's vector will resume the defined downtrend that started in mid-January especially if a "n" reversal off the midpoints is seen. "Day Trader" had no trades for AXP and MMM and will discuss his selections after the close. Swing Trading - Feb 9, 2010 3:30pm "Swing Trader" has no trades for the day. After 4:00pm - Feb 9, 2010 Broad market index SPX.X reached its midpoints and backed off from this first resistance point. Illustrated below is how prices remain in a defined downtrend and only a decisive breach of Tuesday's high could change the chart pattern into a sideways consolidation. For now, patience is warranted.
Tech and bio-tech index COMPX also reached its midpoints and we shall soon see if it can continue the rise. Shown below is how the index remains "consolidating at the lows" relative against the January prices which were much higher.
As the stock indices as well as several tech leaders like IBM, AAPL, MSFT, AMAT, etc., have reached/touched their midpoints with this reflex rally and are "consolidating at the lows," Tuesday's activity should lead to a pivotal Wednesday. As such, "Day Trader" has no buys because declining midpoints represent the first resistance of a defined downtrend nor any momentum sells as prices did not finish near the low of the day. Trade Summary - Feb 2, 2010 No trades Week's Recap No trades |
